XPANDIUM is a reliable partner for companies seeking employer of record (EOR) services. At XPANDIUM, we specialise in assisting companies in hiring and managing employees compliantly while avoiding the complexities of Romanian employment regulations and establishing a legal entity in Romania.
Capital City
Romania
Currency
Romanian Leu, RON, (1=100 Ban)
Population Size
19,100,000
Language Spoken
Romanian
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Overview
As your expert provider of Employer of Record services in Romania, XPANDIUM takes care of payroll management/administration, contractor services, compliant candidate onboarding, tax payment and benefits through our local EOR entity. Our in-depth knowledge of Romanian labour regulations offers a compliant approach to workforce management – leaving you to focus on the critical part - maximising your business’s full potential.
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Salary Calculator
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Xpandium - Hire your employees in Romania
The Romanian labour market operates under the local labour code. This code regulates employer-employee relationships and sets the standards for fair and transparent workplace practices.
Companies are expected to comply with rules and procedures set out in the labour code about salary levels, hiring employees in Romania, hiring contractors in Romania, working hours, paid time off, different types of leave, termination of employee contracts and discrimination.
To hire employees in Romania, companies require an extensive understanding of the Romanian labour code, and non-compliance can be an expensive and time-consuming problem to solve.
Partnering with XPANDIUM can assist your company in avoiding these legal pitfalls and establishing and implementing the required procedures to ensure your workforce thrives.
Like other EU countries, Romania has different regulations for employing full-time and contracted or part-time employees. Misclassification of these employees may lead to non-compliance and result in costly fines and penalties.
XPANDIUM’s expertise in Romanian labour practices offers your business seamless guidance and support. We will ensure that your employees are correctly classified and that the proper labour practices are maintained.
XPANDIUM offers a comprehensive solution that simplifies compliance with Romanian labour codes and keeps companies updated on any new changes. With XPANDIUM, you can ensure that your business always operates within legal boundaries while avoiding hefty fines and penalties.
Employment Contract
Employment relationships may be agreed on for
- fixed term employment (temporary) or
- indefinite duration (open-ended, permanent).
Probation period
Probation period is optional and cannot exceed 4 months.In case of fixed-term contracts, the probation period can not be more than 50% of the term of the contract.
Working hours
Full time employment is considered 8 hours per day and 40 hours per week in Romania. Less hours will mean part-time work.
Hours worked above 8 hours per day / 40 per week or on public holidays are considered overtime. Employer and Employee must agree on working overtime.
Overtime hours cannot exceed a total of 8 hours within a 7 days’ period and must be compensated during payroll for overtime as per local law.Parties may agree that the overtime hours over a 4-months’ time-frame schedule be an average 12 hours for every 7 calendar days.
Minimum wage
The current minimum wage is 584 EUR for full-time employment or 3.84 EUR for hourly work in Romania.
13th month salary
Not required.
Benefit package
In Romania, there are no obligatory fringe-benefits that an Employer must offer, however a custom benefit plan may be set up for your team (see more details at the Benefit section).
Payroll Cycle
Salaries are payrolled and paid on a monthly basis.
Health insurance in Romania
The Romanian health insurance system is a solidarity-based social insurance system. This means it provides healthcare for everyone, including persons insured by employment agreement. Romania is covered by health care and treatment is equally available in all regions. Employees can order a European Health Insurance Card or its replacement certificate in the State Portal.
Employer taxes
33.8% total employment cost in Romania.
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Public Holidays
NAME
DATE
INFO
New Years Day
January 1
Independence Day
February 24
Good Friday
April 2
Friday before Easter Sunday
Easter Monday
April 4
Varies yearly
Labor / Spring Day
May 1
Pentecost
May 23
Victory Day
June 23
Jaanipäev
June 24
Romanian Day
August 20
Romanian Restoration of Independence
Christmas Eve
December 24
Christmas Day
December 25
2nd Day of Christmas
December 26
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Popular benefits in Romania
Attracting top talent in the Romanian labour market will require companies to offer custom benefits as part of an attractive compensation package. As part of our payroll services in Romania, XPANDIUM can assist your business in designing and establishing customised plans to compensate employees beyond regular salaries. These voluntary, non-salary benefits may include:
Supplementary medical insurance (such as private health, dental and vision insurance)
Supplementary life insurance or other unique insurance plans
Additional paid time off
Flexible working schedules
Voluntary pension fund scheme
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Benefit planning process includes
When your company hires employees in Romania, XPANDIUM can assist with planning and implementing benefits programs for individuals or groups of employees.
This process will include:
- Helping you decide on the annual benefit amount to offer employees – this amount can be divided into 12 monthly payroll instalments.
- Helping you determine which benefits will be best suited for your employees – this includes benefits such as medical insurance, additional paid time off and flexible work schedules.
- Preparing and communicating internal policies outlining benefit plans and integrating these policies with payroll.
- Ensuring employees have accurately completed benefit statements – specifying preferred benefits and respective amounts. These statements must be completed, signed and provided to the Polish Employer of Record for processing.
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Types of Leaves in Romania
Paid leave
Employees are entitled to 28 days.
Public holidays
There are 12 public holidays in Romania.
Sick leave
An employee is entitled to 182 sick-leave days yearly while enrolled in the national social security system.
Payment is 70% of the employee’s average salary, which is paid by the Employer from the 4th day of sickness but from the 9th day the payment is taken over by the State.
Pregnancy and maternity leave
Expecting women can have a total of 20 weeks / 140 days.
Maternity leave may include and start 70 days prior to giving birth. State health insurance covers maternity leave with 100% payment.
Parents receive a one-time 320 EUR allowance for child birth and in case of triplets the payment is 1,000 EUR per child.
Paternity / paternal leave
The father is entitled to 10 working days off for paternity leave which can be granted within 2 months of the expected child’s birth date. After the birth, fathers are entitled to 2 months of paternity leave with the payment of 100% average salary payment, however it is capped at 3 times of the minimum wage amount.
Other / Child Adoption leave
Employees are entitled to a special leave if adopting a child under the age of 10.
Other / Child care leave
Any parent may take paid leaves for taking care of a child.
Leave varies based on the age of child:
- 3 days - up to 2 children under the age of 14
- 6 days - 3+ children under the age of 14
Payment for days taken is calculated based on the minimum wage.
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Employment termination in Romania
Employers have the below options to terminate an employment contract in Romania:
Termination under probation period
Termination by the Employer is immediately effective with a special 15 days’ written notice to the Employee.
Resignation by Employee
Employees may freely terminate their employment contract with a written notice of minimum 14 days to 1-month notice.
Termination by Employer with notice
An employment agreement may be terminated by the Employer by notice with below period of notices.
If employment period is
- up to 1 year period: 15 calendar days
- from 1 to 5 years of employment: 30 calendar days
- from 5 to 10 years of employment: 60 calendar days
- 10+ years of employment: 90 calendar days
Termination of fixed term contract
If termination is due to Employer’s redundancy, the employee is entitled to the salary that they would have received from the date of termination to the expiry date of the contract.
Termination by mutual consent
The termination by mutual consent allows the Employer and Employee to agree freely in a written agreement with each other on the conditions of termination.
Expiry of employment contract
When the employment contract expires then such employment is automatically terminated.
Severance pay
Employee is entitled to severance pay if the Employer terminates the contract due to redundancy. The severance pay is the average salary calculated based on the latest 6 months salary.
Employees are entitled to receive higher amounts of severance pay depending on the length of employment with the Employer:
- From 5-10 years of employment: +1 month salary
- over 10 years of employment: +1 month salary
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How EOR works in Romania
XPANDIUM simplifies hiring employees in Romania without establishing a legal entity. With our EOR services in Romania, we take on the burden of compliance by handling human resource administration, benefits, payroll and employee taxes for you.
By partnering with XPANDIUM as your EOR in Romania, we take on the employer's role on your behalf through our Romanian entity. We ensure your employee hiring, onboarding, and management will be done seamlessly and fully compliant with Romanian labour laws – enabling your employees to start working within days.
Take the complexity out of hiring employees in Romania, and contact XPANDIUM for a tailored solution.
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Payment in Romania
Establishing a payroll system in Romania will require careful consideration of your company’s operational needs. There are several options available for businesses looking to set up employee payroll in Romania:
- Internal payroll management – Larger companies with an established entity in Romania may hire internal personnel to maintain HR and payroll functions – however, this can be a costly and resource-intensive strategy.
- Remote Integration – Companies with a parent entity can smoothly integrate employee payroll into their existing system. However, this option must be cautiously implemented as differences in employment laws between entities may present problems.
- External payroll provider – Outsourcing payroll services in Romania allows your company to shift the intricacies of payroll administration to a third party. However, inaccuracies will still be your responsibility.
Efficient management and implementation of employee payroll in Romania will require your company to have processes and procedures to maintain timelines for employee/employer contributions, salary-related tax declarations and payroll payouts.
Successfully navigating these procedures requires understanding payroll intricacies specific to Romania. XPANDIUM is a payroll provider in Romania that can effectively assist your company in managing these complexities. Our expertise ensures that employee payroll in Romania is meticulously handled while ensuring compliance with all regulations, allowing you to focus on growing your business.